Got some cash to invest but don’t know what to buy? Well you’re in luck. The stock market crash has provided a sea of opportunity for those looking to buy UK shares. And there is plenty of help on offer from experts like The Motley Fool to help you find these share market gems.
3 great dividend stocks
Whether you’re looking for growth or income there are scores and scores of terrific UK shares trading at rock-bottom prices today. Dividends have been toppling like dominoes in 2020 but many British stocks remain in great shape to keep paying decent shareholder rewards.
- Direct Line Insurance Group’s 9% dividend yield makes it one of the hottest income-paying UK shares to buy today. Profits at general insurance providers tend to be more resilient during economic downturns like these. And particularly so among those that provide essential car insurance. I’d use Direct Line’s 8% share price fall in 2020 as a buying opportunity.
- Healthcare-related stocks also have excellent earnings visibility in good times and bad. And this makes them excellent picks for dividend investors. With this in mind I’d buy Alliance Pharma shares as the economy tanks. Its yield sits at a healthy, inflation-beating 2.3%. I’d hold it for years to come too as sales of its drugs take off in foreign markets.
- NWF Group’s share price hasn’t fallen in 2020 but it still looks attractive at current prices. Why? Well right now its dividend yield sits at a chubby 3.4%. This AIM share is also one of the best UK shares out there for defensive investors as its animal feeds and grocery distribution services will remain in hot demand whatever the weather.
2 top UK shares for growth
The Covid-19 crisis is playing havoc with corporate earnings today. But not all UK shares are expected to see profits collapse in 2020.
- Gateley Holdings is expected to keep earnings growing over the next couple of years, albeit by mid-single-digit percentages. This is no mean feat of course given the threat of a severe economic downturn. I’m particularly excited the steps that the commercial lawyers have taken to drive growth by boosting their headcount in the UK and expanding into the Middle East. This should help supercharge earnings when the recovery kicks in.
- Investors looking for brilliant earnings growth from UK shares today should consider buying B&M European Value Retail. Economic downturns play into the hands of discount retailers like this as shoppers try to stretch their budgets as far as they can. Ongoing expansion will allow this cut-price operator to make the most of this favourable environment, too. City analysts reckon annual earnings will rocket 40% in this fiscal year. Investors can expect its store opening programme to deliver mighty profits growth when broader shopper confidence improves as well.